AP Macro Review 4
Flashcard
•
Social Studies
•
12th Grade
•
Practice Problem
•
Easy
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1.
FLASHCARD QUESTION
Front
Which of the following graphs best depicts the Phillips curve model of Te Rehunga based on this AD-AS model?
Back
2.
FLASHCARD QUESTION
Front
Assume that the velocity of money in Theopolis is 3 and the aggregate supply curve is vertical at $100 million. What impact will an increase in the money supply have on real output?
Back
There will be no impact on real output
3.
FLASHCARD QUESTION
Front
Which combination of monetary and fiscal policy would be appropriate to return Mithrim's economy to full employment given a natural unemployment rate of 5% and a current rate of 2%?
Back
Increasing taxes; open market sales
4.
FLASHCARD QUESTION
Front
In the graph of the Phillips curve above, an economy moved from point 1 to point 2 to point 3. Which of the following would be the most likely reason for the movement from point 2 to point 3 shown in this graph? A change in the natural rate of unemployment, An increase in aggregate demand, A decrease in aggregate demand (AD), A decrease in short-run aggregate supply (SRAS), An increase in short-run aggregate supply (SRAS)
Back
A decrease in short-run aggregate supply (SRAS)
5.
FLASHCARD QUESTION
Front
The economy of Rivendell experienced the AD shock shown in this graph. Which of the following combinations of monetary and fiscal policy would be appropriate to combat the effect on the price level shown in this graph? Increase taxes; open market sales, Sell bonds; increase the reserve requirement, Decrease taxes; increase government spending, Decrease taxes; decrease the reserve requirement, Increase taxes; decrease the reserve requirement
Back
Increase taxes; open market sales
6.
FLASHCARD QUESTION
Front
This graph shows the trade-offs facing an economy that produces only two goods.
Back
Production possibilities curve
7.
FLASHCARD QUESTION
Front
Point ___ is impossible with existing resources and technology.
Back
X
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